Plaintiffs settle with Trump administration, reversing cuts to agency funding US libraries

A legal challenge to cost-cutting measures affecting a federal agency that funds libraries and museums across the United States has been settled, partially reversing earlier steps taken by the Trump administration.

The plaintiffs, the American Library Association and the American Federation of State, County and Municipal Employees, said on Thursday that they had reached an agreement with the United States Department of Justice. The settlement allows the Institute of Museum and Library Services (IMLS) to continue awarding grants and running programmes that support libraries and museums.

The White House referred queries to the Justice Department. The Civil Division of the department, which agreed to the settlement, did not immediately comment.

Lawsuit challenged executive order

The two organisations had filed a lawsuit in May, led by Democracy Forward, seeking to stop the administration from reducing the role of IMLS. The action followed an executive order signed on March 14 by Donald Trump, which described IMLS and several other federal agencies as “unnecessary”.

According to the Associated Press (AP), the measures were part of a broader effort to reduce federal spending by cutting staff, grants and programmes.

Following the order, staff at IMLS were placed on administrative leave and many received termination notices. The agency’s acting director also cancelled grants and contracts and removed members of the National Museum and Library Services Board.

Settlement restores staff, halts further cuts

Under the settlement, all reductions in force issued in 2025 have been rescinded. Employees who received notices have been authorised to return to work. The agreement also states that IMLS will not issue further reductions in force to implement the executive order.

Lee Saunders, president of the American Federation of State, County and Municipal Employees, said the settlement was a victory for communities that rely on libraries and museums.

In a statement quoted by AP, American Library Association president Sam Helmick said, “When the administration began shuttering IMLS last year, it set off a chain reaction. Libraries across the country started cutting hours, staff and services people rely on, after-school programs, support for job seekers and connection for older adults.”

Case to be dismissed after compliance

The plaintiffs said they will file a joint stipulation to dismiss the case without prejudice within seven days, provided the government complies with the terms of the agreement.

The announcement comes days after a federal judge in Rhode Island approved a request by the administration to withdraw its appeal in a separate case brought by 21 state attorneys general, AP reported.

Role of IMLS

IMLS is the only federal agency responsible for funding libraries in the United States. It was established in 1996 by a Republican-led Congress.

The agency supports museums, libraries and related institutions through grants, research and policy initiatives. It distributes thousands of grants across the country, amounting to more than $200 million annually in recent years.

IMLS was formed by combining earlier bodies, including the National Commission on Libraries and Information Science and the Institute of Museum Services.

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